Automotive Supply Research Articles

書評：赤羽淳・土屋勉男・井上隆一郎著『アジアローカル企業のイノベーション能力』 同友館 2018年 ⅴ+215ページ

書評：赤羽淳・土屋勉男・井上隆一郎著『アジアローカル企業のイノベーション能力』 同友館 2018年 ⅴ+215ページ

Collaborative alignment of design partners: first step towards the definition of multiple design process models used by an automotive supplier according to specific carmakers

Each player in the automotive value chain usually has its own design process model. Suppliers must evaluate the process by eliminating, adjusting (crashing), or fast-tracking steps according to each demand of a specific project. Sometimes a carmaker involves a supplier too late in the overall design process. Consequently, suppliers must pass over some validation activities and accelerate others to keep pace with the carmaker. This research aims to create a supplier design process model aligned with a carmaker's, which can support the collaborative design and prevent future problems. Based on this experiment, the broader objective is to define a set of process models for any relationship with specific carmakers. The methodology adopted is insider action research carried out in a real environment. One of the researchers is an employee of the company, which provided many insights for this research. The results confirm the reduction of the design development effort measured in engineering hours and development costs. The development lead time was also reduced, but other practices such as joint meetings may have contributed to this reduction. These practices were deployed from the integrated and aligned collaborative process model.

Growth strategy of automotive parts supplier in overseas market

Growth strategy of automotive parts supplier in overseas market

Commitment as a buyer-supplier antecedent for supply chain sustainability

The South African automotive industry is an important sector that contributes substantially to the country's economy. The sustainability of local suppliers within South African automotive supply chains is under threat because of global pressures, especially competition from low-cost countries. Increased pressure leads to conflict between international buyers and local suppliers. The result is strained relationships, causing lower levels of commitment, often increasing risk and threatening the sustainability of local suppliers. The aim of this study was to determine whether commitment as an antecedent within supply chains exists and whether such a precursor has an effect on sustainability within South African automotive supply chains. The study found, through the application of a linear regression model, that commitment could potentially contribute to vital supply chain sustainability in South Africa. The results point automotive component suppliers towards investing in a relational governance strategy to enhance buyer commitment and thus contribute to business sustainability.

Robust optimization of information flows in global production networks using multi-method simulation and surrogate modelling

Low information exchange in global production networks results in long response time to disruption and negative performance impact. Digitalization enables a more intensive information exchange. This paper analyses the performance of order management, quality problem resolution and engineering change management in production networks with respect to different disruptions and information flows. Cause-effect relationships are revealed based on a multi-method simulation model and statistical experiments. Using surrogate modelling and robust optimization, a target picture for information exchange is determined. The benefits of the approach are demonstrated using a case study for the production of metal-plastic parts for the automotive supplier industry.

Learning Needs Determination for Industry 4.0 Maturity Development in Automotive Organisations in Slovakia

Purpose: This paper aims to present the results of the study focused on the assessment of Industry 4.0 (I4.0) maturity level and adoption level of Quality 4.0 (Q4.0) intelligent technologies in organisations operating in the automotive industry in Slovakia (OEMs, Tier 1 and Tier 2 suppliers). The results serves as inputs for identification of learning and development needs.Methodology/Approach: The background of the study was a literature review and quantitative research. The I4.0 maturity model published by PwC (2016) was used in the study, while dimension elements were adjusted to the specifics of the automotive industry.Findings: Tier 1 and Tier 2 automotive suppliers are in the early stages of I4.0 maturity and adoption of Q4.0 intelligent technologies. OEMs achieve the level of horizontal collaborators in most of the dimensions. Q4.0 intelligent technologies are mostly adopted at an average level. Further development of OEMs to achieve the level of digital champions requires new disruptive business models and a fully integrated partner ecosystem.Research Limitation/Implication: The research is limited by the sample size and target levels of particular dimensions, related elements and Q4.0 intelligent technologies, which were not examined.Originality/Value of paper: The results bring more in-depth insight into the current state of I4.0 maturity and Q4.0 technology adoption level of the automotive organisations in Slovakia. There is no evidence of the study examining holistically the I4.0 maturity and Q4.0 technologies in the automotive.

Challenges concerning test case specifications in automotive software testing: assessment of frequency and criticality

Automotive test case specifications document test cases to be performed for a specific test object at a defined test level. They are a fundamental part of a structured automotive testing process, as required by the ISO 26262. The aim of our research is to identify challenges from a practitioner’s point of view that lead to poor quality of test case specifications and thus negatively impact time, cost, and probability of defect detection. We designed an exploratory case study to systematically identify challenges focusing on (C) creation, (P) processing, and (Q) quality assurance related aspects of test case specifications. We conducted 17 semi-structured interviews covering a German OEM as well as three of its automotive suppliers and analyzed them qualitatively. We investigated causes and consequences arising from the challenges. Additionally, we conducted a descriptive survey to assess frequency and criticality. The identified challenges were summarized in a taxonomy consisting of nine main categories: (1) availability and (2) content-related problems with input artifacts, problems related to (3) a lack of knowledge, (4) the test case description, (5) the test case specification content, (6) processes, (7) communication, (8) quality assurance, and (9) tools. The challenges were assessed by 26 internal and 10 external employees. Hence, we identified differences between these groups in terms of access to documents, incomplete requirements, scope of model series, process, and tool-related aspects. Overall, the study results underline the necessity of quality assurance measures for test case specifications. Based on the assessments, our research indicates a broad range of test case description related challenges that are promising candidates for improving test case specification quality.

SURVIVING POSSIBLE?

The importance of the automotive industry for Germany’s economy and employment is significant: 24% of total revenue for manufacturing and processing goods is gained by the automotive industry in Germany with over 800,000 employees. As the supply side contributes 3/4 to the value chain, the research focuses on German automotive suppliers and how they perceive the shift from combustion engines to electric engines and to fully autonomous vehicles. For the explorative study, a qualitative content analysis based on expert interviews was used. 15 top and high-level managers from 14 German automotive suppliers were personally interviewed. The analysis has proven that most suppliers are significantly affected through these transformations. Only three suppliers evaluate the changes mainly as growth drivers for their business, while the rest faces large challenges and great threats from the industry developments.

Case study: evaluation of the automation of material handling with mobile robots

The automation of material handling is one of the solutions that many companies are relying on to reach their goals related to productivity increment, floor space optimization, higher standards for factory’s safety, and allocation of workers to value-added activities. Therefore, the objective of this study was to evaluate the current state of the material flow of finished goods for an automotive parts supplier plant and the technology available on the market to verify if it was worthwhile to invest in material handling automation. The analysis included the use of discrete event simulation to evaluate the different layout approaches combined with the mobile robots’ performance. It was proven that the tandem layout was the most beneficial approach to the analyzed plant’s reality with a minimal of three robots. Improvements to the material flow and automation of the labeling process were also proposed based on the study.

Information quality focused value stream mapping for the coordination and control of production processes

Manufacturing companies become more and more dependent on reliable information from the shop floor. This information represents the current state of the shop floor and is often the basis for control decisions. By relying on this information, the quality of the information becomes a crucial factor, as it may decisively influence the result of the control decision. To ensure sufficient information quality, a six-staged method, called ‘Information Quality focused Value Stream Mapping for the Control of Production Processes', is introduced in this paper. It is based on the value stream mapping (VSM) and extends parts of the value stream analysis (VSA) to capture relevant information needed within the value stream design (VSD). Furthermore, the method extends the VSD to select and develop methods for the coordination and control of the production processes and to harmonise the necessary information flows for coordination and control. The application of the method and the relevance of harmonising information quality is illustrated by an industrial application at an automotive supplier.

Assessing the social sustainable supply chain indicators using an integrated fuzzy multi-criteria decision-making methods: a case study of Turkey

Sustainability of environmental, economic, and social systems aims to not destroy the resources that future generations should have in today's shacks. However, for many years, the concept of sustainability has only been examined in the economic and environmental contexts, and the concept of social sustainability has been neglected. The social dimension, which is a very important factor besides economic and biophysical environment within the social structure, is one of the most basic pillars of sustainability. In this study, we focused on the example of companies in the automotive industry in Turkey to evaluate them in terms of social sustainability. Many automotive manufacturers and suppliers are operating in Turkey. However, some of them are local, and some of them are working with regional companies. This differentiation affects the level of self-development of companies. Therefore, the case study for the evaluation of Turkey's social sustainability will provide the opportunity to achieve significant results. In this study, four companies that are in a supplier status in the automotive sector were considered by the Fuzzy Analytic Hierarchy Process (FAHP) and Fuzzy Technique for Order Preference by Similarity to an Ideal Solution (FTOPSIS), which are Multi-Criteria Decision-Making (MCDM) methods. The obtained results revealed the situation in terms of the social sustainability of the automotive industry companies in Turkey. Finally, there were evaluations of what kind of improvements should be made in the framework of social sustainability indicators based on the case study results.

A critical analysis of the AIAG-VDA FMEA; does the newly released AIAG-VDA method offer improvements over the former AIAG method?

After several years of collaboration, The Automotive Industry Action Group (AIAG) and The German Association of the Automotive Industry (VDA) completed a harmonized version of their respective FMEA methods. Previous to the joint initiative, each organization had their own Failure Modes and Effects Analysis (FMEA) recommended methods & guidelines. The differing methods posed confusion among those automotive suppliers that supplied both markets. As a result, the AIAG & VDA FMEA 1st edition Handbook (2019) was created to mitigate the confusion, improve the overall FMEA development process, and to improve efficiency developing accurate, robust and effective FMEA's. The AIAG-VDA 1st edition (2019) may or may not have improved the method or offered efficiency gains to the FMEA development process. Early critique of the new method offered by Harpster (2018) stated "If the AIAG-VDA DFMEA methodology (which uses structure, function, and failure analyses to determine critical DFMEA content) is implemented, it will result in an automotive DFMEA process that is both considerably less effective and much more inefficient than the current methodology described in the AIAG 4th Edition FMEA manual". This result of this research is a critical, holistic review of the recently published (June 2019) AIAGVDA FMEA Handbook along with summarized advantages and disadvantages associated with the new automotive FMEA development process. While the new FMEA AIAG-VDA process offers several advantages, and results in a more robust FMEA, the increased complexity, need for dedicated software, and the learning curve associated with the new process may represent a significant barrier to improving the FMEA development process in the automotive community.

Why and How Your Traceability Should Evolve: Insights From an Automotive Supplier

Most existing traceability management approaches do not consider that traceability is situated in constantly changing development contexts. We present how traceability can be evolved in the development lifecycle, from early elicitation of traceability needs to the implementation of mature traceability strategies.

The influence of supplier development programs on supplier performance

A major responsibility of purchasing professionals is to monitor the performance of suppliers in their supply chain system. Governance relates to processes and decisions that seek to define actions, and verify supplier performance. Governance mechanisms are the tools in which power and risk are stabilized in interorganizational relationships. As a governance mechanism, supplier development programs (SDPs), which include supplier bilateral/communications, incentives, competitive pressures and direct involvement, represent a surrogate form of power exerted by buying organizations. Bilateral/communication is defined as two-way communication using an evaluation process. The ultimate success of SDPs must assess and be mindful of the supplying organizations’ vantage point. Little is understood about how SDPs influence supplier performance. This is the first large-scale empirical study to investigate the use of supplier development programs (SDPs) as a surrogate for governance power on supplying organizations. Using structural equation modeling and primary data from 141 first-tier North American automotive suppliers, the results suggest that the relationship between SDP and supplier performance is mediated by bilateral/communication, cooperation and commitment, and that SDPs directly affect the relationship between buying and selling organizations. It was found that it is fruitless for buying organizations to implement bilateral/communications, incentives, competitive pressure or direct involvement without first building exceptional relationships with their suppliers. Finally, the findings suggest that bilateral/communications, cooperation and commitment are key drivers of supplier performance.

A Green Wave for Electric Cars

AbstractThe automotive industry and suppliers are looking for production standards for the mass manufacture of electric cars. It turns out that green laser light is the ideal welding tool for copper electrical components.

Factors influencing swift and effective resolution of supplier problems

PurposeHow might an organization swiftly resolve supplier problems such that the issue does not reoccur? The purpose of this study seeks to understand the impact of different knowledge-sharing routines on measures of effective problem resolution.Design/methodology/approachData are collected from an automotive manufacturer's (buyer) database. A hierarchical linear model analyzes dyadic data collected from 155 problems across 24 suppliers.FindingsThis study reveals that different ways of communicating have differing impact on measures of effective problem-solving. Communication involving face-to-face interaction slows the process, whereas frequent communication can lead to swift resolution. Furthermore, management teams are more likely to lead to a “better” fix in that these teams are more likely to implement changes in the process or product.Research limitations/implicationsThe data are for a tier-one automotive supplier. Hence, the findings are limited by the extent to which other organizations may differ.Practical implicationsThe results provide insights for managers experiencing supply issues. Some forms of communication should be encouraged as they enhance the process. Moreover, the findings suggest there are consequences to pressuring a supplier to resolve a complaint quickly.Originality/valueVery few researchers can claim to have investigated observed collaborative mechanisms that occur between a buyer and its suppliers when resolving a problem. This research adds to the literature on the relational view theory as it applies to supply chain management and problem resolution.

Supplier empowerment: Mediating situational factors and perceived performance

The understanding of the behavioral and cognitive factors that affect organizations' performance has attracted increasing attention of scholars and practitioners. Based on the literature of psychological empowerment at the individual and the team levels, this study develops the concept of supplier empowerment in the context of purchasing and supply management. Further, this study proposes a research model that explores the role of supplier empowerment as a cognitive concept in mediating the relationship between situational factors (a supplier's process modularity and the mutual trust with its customers/buyers) and the supplier's perceived performance in its operations and customer service. This model is tested with 208 responses from automotive industry suppliers. The findings highlight the importance of empowered suppliers in decreasing inventory levels and increasing order fulfillment performance.

Quality and innovation as drivers for manufacturing competitiveness of automotive parts suppliers

PurposeThe purpose of this paper is to identify the causal relationship between the independent variables such as process quality and product innovation in regard to the dependent variable of competitiveness, in the manufacturing sector of the automotive industry, specifically for Tier 1 auto parts manufacturing companies in the state of Nuevo León, México.Design/methodology/approachBased on a thorough review of the literature, an instrument was designed to measure the competitiveness of automotive industry manufacturing; it was applied to Tier 1 suppliers of automotive parts in the state of Nuevo León, México. Various statistical analysis tests were applied to the results; first, Cronbach's alpha to determine the reliability of the instrument, and next, a factor analysis to measure construct validity. In addition, a multiple linear regression analysis was carried out to identify the causal relationships between the variables analysed.FindingsThis study found that process quality as well as product innovation have independent and positive causal relationships with respect to competitiveness in automotive manufacturing.Research limitations/implicationsThe limitations of this paper are its focus on a single manufacturing sector, application in a single country and small sample size.Practical implicationsCompanies that supply automotive parts will be able to invest in the key elements of quality and innovation while focusing their efforts on reinforcing their competitiveness.Originality/valueAuto parts suppliers will be able to perform specific actions to improve their quality processes through lean manufacturing and quality assurance practices and by designing new and innovative products that will enhance their competitiveness.

Risk and counter-strategies: The impact of electric mobility on German automotive suppliers

For the first time in decades, the automotive industry is undergoing a technological paradigm shift, as the combustion engine technology is gradually being replaced by electric engines. This transition will make parts of the existing automotive supply chain redundant. Risks of this market shift are particularly pronounced in the automotive supply sector in Germany. Numerous studies examine the risks and opportunities of automotive market transitions on a macro-level. However, empirical evidence is missing on the aspect of how “traditional” German automotive suppliers actually respond to the expected market uptake of electric vehicles.This study aims to contribute to the understanding of strategic options and choices of automotive suppliers from the forging and foundry industries as well as system suppliers by presenting evidence from qualitative interviews. It argues that existing patterns of supplier-buyer relationships make upgrading strategies within given value chains a more attractive strategic option than sector diversification. In order to evaluate the individual circumstances on the company-level and the implications of firm strategies on their organizational environment, conceptual aspects from the theories of global production networks and global value chains are applied.

Process model for the successful implementation and demonstration of SME-based industry 4.0 showcases in global production networks

Small and medium-sized enterprises (SMEs), many of which operate as suppliers in global production networks (GPN), often times lack behind large enterprises in terms of Industry 4.0 implementation. For this reason, scientific contributions recommend SMEs to approach Industry 4.0 through pilot projects in which individual Industry 4.0 use cases are developed and implemented. Hence, to allow for a targeted development and implementation of Industry 4.0 use cases for SMEs in GPN, this paper proposes a five-step process model that seeks to make use of Industry 4.0 potentials in terms of increased product qualities and logistics performances within such networks. In contrast to existing process models, this paper follows a holistic approach that initially focuses on the identification of potential problems that impede increased product qualities and logistics performances. Building upon these problems, potential Industry 4.0 solutions are derived and transferred into use cases using a structured idea generation and selection process. After the successful implementation of the use case, the procedure is completed by the conversion of the use case into a showcase that might serve as a lighthouse project illustrating the potentials of Industry 4.0 for other production network partners. For testing its practicability, the procedure is exemplarily applied to the GPN of an automotive supplier.